The Fed Conjurs Up $600 Billion

In an effort to support sagging interest in US Treasuries, the Federal Reserve has resorted to what they call "quantitative easing" which is a fancy way of saying creating new money out of thin air.

What they are effectively doing is monetizing the losses by both the banking sector and the federal government, by which I mean stealing wealth from every person who holds US dollars to pay for boneheaded mistakes at the highest levels of power.

The Fed has couched this new money magic in a false effort to, well, I don't know what bullshit they're spinning this time. Increase demand, increase lending, reduce interest rates, support the stock market, stimulate the economy. Whatever, don't believe them. This is yet more trickery to hide the fact that America is in a deep, deep hole.

It's as if the Chilean miners were given massive doses of hallucinogenic drugs to help them forget that they were buried thousands of feet below ground. Unfortunately, the drugs eventually wear off, and you're still 2,300 feet underground.

On the news of fresh, new money, stocks jumped, as did gold and silver. The new money shocked the stock market up sharply, and the loss of faith in the dollar pushed more investors into already inflated gold and silver.

Those in the know can see right through the Fed's trickery and are making out like bandits. Everybody else is getting royally screwed, but probably don't even know it.

The Fed is playing roulette with the wealth of an entire nation. The fact that so few people are outraged is proof that Americans are woefully uninformed about their own monetary system.

Or, as Henry Ford once said, "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."

Smells Like Revolution?

‎"Revolutions are most likely to occur when a prolonged period of objective economic and social development is followed by a short period of sharp reversal. People then subjectively fear that ground gained with great effort will be quite lost; their mood becomes revolutionary."
--James Chowning Davies

Patrick Henry

The Breaking Point

Joe Stack fought the system, and lost. He fought the system again, and lost. He fought the system once more, and lost. Then he snapped, and Joe Stack flew his Piper Cherokee PA-28 into the first floor of an Austin, TX IRS office building.

Joe Stack was one of us. He had a job. He had a family. He had hobbies. He played in a band. He flew his airplane. His bandmates knew a normal man, not a creepy introvert, not an obsessive extrovert, just a normal guy.

His airplane mechanic couldn't believe the news of Stack's demise. An old business associate also claims he was just a normal guy.

His manifesto did not have the insane rambling quality that might point to a deeply disturbed mind, despite what the media may say about it. He laid out a reasonable case against a specific tax law that had repeatedly caused him and many like him much psychological and financial pain. He painted a broad picture of the corrupt American system that few can really disagree with.

Joe Stack was not the first person to question this particular tax law, SEC. 1706. No, this law had been questioned since its inception.

It was first proposed by Sen. Patrick Moynihan as a way to pay for a $60 million tax break for I.B.M. It raised funds by essentially requiring engineers like Stack to be attached to a company, rather than allowing them to work on their own through contract work.

One year after the bill's inception, Sen. Moynihan realized his mistake and proposed the bill be repealed. This proposal died before it could get a vote.

This tax law specifically affected Stack. According to his manifesto, he went through all the legal channels available to him to try to right this wrong, but his efforts amounted to nothing but legal bills and more taxes.

Joe Stack is one of us. After decades of IRS harassment, of banging his head against the wall, and seeing a government that only got worse, he reached his breaking point. Who among us could say we could go through what he went through and still maintain a peaceful demeanor?

After nearly 30 years of fighting peacefully, he came to one conclusion: "Nothing changes unless there is a body count."

Judging from what I know of our governance, I'm afraid he was right.